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QUESTION TWO- chapters 3 and 4. The best practice question to use from workshops is the question from workshop One Question Six about "Digger"

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Billy Bob and Angeline decide to set up a tattoo parlor called "Tatts r Us." They wish to run their business under the structure of the company and to be the only directors and members of the company. They would like to keep the company's business as private and as confidential as possible. Their friend Brad suggests setting up a company called "Tatts r Us Ltd."

The business has a constitution that stipulates that Antonio Gonzales has been named master tattooist for life. Some customers complained to the directors that they had serious rashes and skin infections following Antonio's tattooing of Tatts r Us Ltd. The directors have learned that Antonio has been using the same dirty needle since he started working for the company. Antonio writes to Tatts r Us Ltd demanding his job back. The company tells Antonio that he has no contract. Antonio buys some shares and writes again stating he now has a contract and wants his job back. The company refuses.

REQUIRED:

(a)Do you agree with Brad's advice underlined above? Explain (2 marks)

Hint: The best practice question to use from workshops is the question from workshop One Question Six about "Digger"

(b)Discuss whether the company has to reinstate Antonio. Use the Corporations Act and case law in support (5 marks)

Hint: The best practice question to use from workshops is one of the parts from the question from workshop Two Question 2 about "Digitup"